PO
1. PURPOSE
The purpose of Mohawk College’s (“Mohawk”) Personal Acquisition of Computer Equipment Policy (“Policy”) is to establish the framework of rules for employees to purchase personal computer equipment through an interest free employee loan. 2. APPLICATION AND SCOPE
This policy applies to all full-time employees of the College. 3. DEFINITIONS
“Full time employee” means an employee who has a permanent position with the College and meets eligibility criteria for the College benefits.
“Personal computer equipment” includes but is not limited to personal computer, laptop, notebook, tablet, iPad and external peripherals (mouse, monitor, printer, scanner, speakers, CD/DVD writers, PC modems, backup unit or power protection unit).
4. PRINCIPLES
A. Accountability - Mohawk College is accountable for the use of public funds. B. Transparency – Mohawk College is transparent to all of its stakeholders and especially to the members of the Hamilton community who it serves. The rules for personal computer loans are clear, easily understood and available to the public. 5. ACCOUNTABILITY AND COMPLIANCE
POLICY NUMBER: CS-1003-1988
POLICY TITLE: PERSONAL ACQUISITION OF COMPUTER EQUIPMENT
POLICY OWNER: CHIEF FINANCIAL OFFICER EFFECTIVE DATE: OCTOBER 1, 1988
5.2. Compliance
The Chief Financial Officer is authorized to ensure that information within this policy is applied.
6. RULES
The financed amount must not exceed $3,500 per employee per purchase and must be repaid, through payroll deduction, within a maximum 24 month period from the purchase date. The employee cannot have more than 2 computer purchase loans outstanding at the same time.
Purchases must involve new personal computer equipment only. Second-hand or private purchases will not be recognized as valid purchases for this program. Total loan proceeds will equal the purchase price of the computer equipment less a down payment of 10% of the equipment purchase price or $200 whichever is greater. For example: Total purchase price is $1,500, deposit is $200; or total purchase price is $3,500, deposit is $350.
Only the purchase of personal computer equipment is eligible. Supplies such as CDs, DVDs, paper etc., are ineligible. Computer software, when purchased with hardware, such as Microsoft Windows, Microsoft Office or any bundled software, virus
protection software and PC utilities software that are provided with the PC package, are also eligible.
A computer purchase loan is considered by Canada Revenue Agency as an interest free loan and therefore is a taxable benefit to employee.
If an employee who has a computer purchase loan resigns, any amount outstanding on the loan is due and payable in full by the employee’s last day of employment.
7. POLICY REVISION DATE Next review August 2016. 8. ATTACHMENTS
Appendix A - Personal Acquisition of Computer Equipment Procedures Appendix B - Agreement Promissory Note
APPENDIX A
Personal Acquisition of Computer Equipment
Procedures
P1. Employee Responsibilities
Employee has two options to acquire personal computer equipment:
1)
Purchase the computer equipment and pay the vendor in full, or
2)
Obtain a quote or invoice from the vendor and request an advance to
purchase the computer equipment.
P.1.1. Option 1
The employee must complete the Promissory Note (see Appendix B) and submit it
to Payroll Services along with the original receipt from the computer vendor. This
form is also included in the “Employee Computer Purchase Program” package which
can be found on Mocomotion (Staff Member Tab – Payroll Info).
Payroll Services will verify employee’s eligibility for the program and verify the
provided documentation. Once the application is approved, Payroll Services will
deposit the loan amount, less 10% down payment or $200 whichever is greater, in
the employee’s bank account on the next available pay date.
P.1.1. Option 2
The employee obtains a quote or an invoice from the vendor showing the total cost
of the computer equipment.
The employee must complete the Promissory Note (see Appendix B) and submit it
to Payroll Services along with the quote or original invoice from the computer
vendor.
Payroll Services will verify employee’s eligibility for the program and verify the
provided documentation. Once the application is approved, Payroll Services will
deposit the loan amount, less 10% down payment (or $200 whichever is greater), in
If the submitted receipt varies from the quote or invoice previously provided by the
employee, the difference will be adjusted on the first available pay. Employee’s
computer purchase deductions will be increased or decreased accordingly, to reflect
the final cost of the computer equipment, however, no more than $3,500 will be
advanced.
P2. Responsibilities of the Program Administrator (Payroll Services)
The Program Administrator (Payroll Services) is responsible for general
administration of the Personal Acquisition of the Computer Equipment Purchase
Program including the following:
•
Verifying employee’s eligibility for the loan(s)
•
Checking for the completeness of the loan’s documentation
•
Approving application for the loan
•
Processing “Agreement Promissory Notes” for new loans
•
Calculating payroll deductions for the loans repayments
•
Calculating taxable benefits associated with the loans
•
Clarifying program guidelines to employees
•
Reconciliation of Computer Loans account.
APPENDIX B
Agreement Promissory Note
In consideration of my Employer, Mohawk College, I agree to finance the computer equipment set out on the attached Schedule 1.
I, (EMPLOYEE NAME) _________________________________, BANNER ID: _____________,
hereby agree to repay the sum of $ ______________ to Mohawk College according to the following terms and conditions:
1. I understand that my loan will be repaid to Mohawk College evenly over a 24 month
period.
2. My employer, Mohawk College, shall and is hereby authorized to deduct an amount
equal to the total purchase price (including taxes) less deposit divided equally over a 24 month period.
3. I understand, and agree, that on any payroll date during the term of this agreement,
I may, if I wish, pay the loan off in its entirety. I understand that additional partial payments are not allowed.
4. I understand, and agree, that in the event of termination of my employment with
Mohawk College for any reason, including death, the balance of the amount payable at the time shall immediately become payable, and Mohawk College is hereby authorized to deduct this from my final pay, including vacation pay, and in the event my final pay is not sufficient to cover the balance, I, or my estate, shall pay the outstanding balance to Mohawk College due immediately upon notification.
5. I understand and agree, that if I fail to provide Mohawk College (Payroll Services)
with a copy of the receipt (as proof of purchase) within 10 working days of receiving the funds in my bank account, the loan shall become immediately payable, in full, and Mohawk College is hereby authorized to deduct this from my pay.
____________________ Employee Initials
6. In the event that payroll is suspended (i.e. unpaid leave of absence), I shall provide Mohawk College with a series of monthly post-dated cheques to cover the payments I would otherwise have made to Mohawk College for the time period involved.
8. I understand that the money borrowed from Mohawk College is considered an interest free loan and therefore a taxable benefit under current income tax legislation. The taxable benefit calculation is based on Canada Revenue Agency’s prescribed rate and will appear on my T4 slip as a taxable benefit. The taxes
associated with this taxable benefit will be deducted on each pay for the duration of the loan.
____________________________________ EMPLOYEE NAME
____________________________________ ______________________
EMPLOYEE SIGNATURE DATE
____________________________________ ______________________
WITNESS SIGNATURE DATE
Dated at Hamilton, Ontario, this _______ day of __________________, 20___.
Authorized by: ________________________ Date:________________________
SCHEDULE 1 TO AGREEMENT PROMISSORY NOTE
TOTAL PURCHASE PRICE (INCLUDING TAXES): $_________________ LESS AMOUNT OF DEPOSIT (10% OR $200, WHICHEVER IS GREATER): $_________________
TOTAL AMOUNT OF THE LOAN $_________________
REPAYMENT TERM IS 24 MONTHS
RETAIL VENDOR’S NAME: __________________________________________________
FOR CONTACT PURPOSES ONLY
EMPLOYEE NAME: ___________________________________ BANNER ID: _______________ EMPLOYEE’S DEPARTMENT/DIVISION: ________________________________________________ EMPLOYEE CONTACT NUMBERS: Work Phone #: _________________________
Home Phone #: ________________________
PLEASE SUBMIT THE FOLLOWING TO PAYROLL SERVICES FOR LOAN PROCESSING:
• ORIGINAL RECEIPT OR COPY OF THE COMPUTER INVOICE FROM THE VENDOR • COMPLETED AND SIGNED AGREEMENT PROMISSORY NOTE (APPENDIX B) • COMPLETED SCHEDULE 1 TO AGREEMENT PROMISSORY NOTE
FOR PAYROLL SERVICES USE ONLY
$__________ - $________ = $____________ ÷ $______________ = $______________
Total Purchase Price Less Deposit Balance Remaining # of pays Amount to be Deducted Including Taxes (10% or $200, (maximum $3,500) (maximum of 48 pays) per Pay
whichever is greater)
___________________________ ___________________________
